Outstanding Balance Percentage Estimated to be Uncollectible 0 30 days outstanding $158,600 0.5% - 31 60 days outstanding 65,000 2.5% - 61 90 days outstanding 41,000 4.0% 91 120 days outstanding 18,200 6.5% Over 120 days outstanding 4,100 10.0%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Balance required in allowance for expected credit losses account

Outstanding
Balance
Percentage Estimated
to be Uncollectible
0 30 days outstanding
$158,600
0.5%
-
31 60 days outstanding
65,000
2.5%
-
61 90 days outstanding
41,000
4.0%
91 120 days outstanding
18,200
6.5%
Over 120 days outstanding
4,100
10.0%
Transcribed Image Text:Outstanding Balance Percentage Estimated to be Uncollectible 0 30 days outstanding $158,600 0.5% - 31 60 days outstanding 65,000 2.5% - 61 90 days outstanding 41,000 4.0% 91 120 days outstanding 18,200 6.5% Over 120 days outstanding 4,100 10.0%
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